[lbo-talk] Targeting Empire?

Yoshie Furuhashi critical.montages at gmail.com
Mon Sep 10 09:51:51 PDT 2007


On 9/10/07, Chris Doss <lookoverhere1 at yahoo.com> wrote:
>
> --- Yoshie Furuhashi <critical.montages at gmail.com>
> wrote:
> >
> > * <http://www.monthlyreview.org/1206sussman.htm>
> > The Myths of 'Democracy Assistance': U.S. Political
> > Intervention in
> > Post-Soviet Eastern Europe
> > by Gerald Sussman
>
> Funding for "democracy promotion" in the region has
> been slashed, by the way. Maybe they realized it
> doesn't work.

Resources for "democracy assistance" have been shifted to the Middle East among other regions. To take just one example, Iran is now the top target of "democracy assistance," 22.66% of FY08 "Civil Society Funding" going to it: "Supporting Freedom's Advocates? An Analysis of the Bush Administration FY2008 Budget Request for Democracy and Human Rights," <http://www.freedomhouse.org/uploads/special_report/50.pdf>, p. 11. See, also, the table "Funding Levels by Region (in thousands)" -- it's clear that, overall, funding levels for "Europe and Eurasia," "East Asia and the Pacific," and "South and Central Asia" decreased and those for the "Near East," "Latin America and the Caribbean," and "Sub-Saharan Africa" increased.

BTW, even when "democracy assistance" fails to effect lasting regime change, as has been the case with Venezuela so far, economic costs for the targeted country can be steep.

Figure 2 shows Venezuela's real quarterly GDP

from 1998-2007 (first quarter)8. As can be seen

from the graph, the trajectory of the economy

appears to be very heavily influenced by external

shocks, especially political instability and strikes.

Chávez's first year (1999), which began with the

price of Venezuelan oil at its lowest point in 22 years,

was marked by negative growth. But the economy

began to grow in the first quarter of 2000 and

continued through the third quarter of 2001. The

next few months were a period of the most extreme

political instability: in December of 2001 the

Venezuelan Chamber of Commerce

(FEDECAMARAS) organized a general business

strike against the government. This political instability,

with much capital flight, continued through April 2002,

when the elected government was overthrown in a

military coup. The constitutional government was

restored within 48 hours, but stability did not return,

as the opposition continued to seek to topple the

government by extra-legal means. Growth remained

negative through the summer and fall of 2002, and

then the economy was hit with the opposition-led oil

strike of December 2002-February 2003. This plunged

the economy into a severe recession during which

Venezuela lost 24 percent of its GDP. (Mark Weisbrot

and Luis Sandoval, The Venezuelan Economy in the

Chávez Years, July 2007, <http://cepr.net/documents/publications/venezuela_2007_07.pdf>) -- Yoshie



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